VANGOLD RESOURCES LTD.
TSX-V:VAN
NEWS RELEASE
VANGOLD RESOURCES LTD ANNOUNCES DIAMOND
DRILL PROGRAM AT FENI ISLANDS
- Vancouver, British Columbia - Vangold Resources Ltd ("VAN") and
it’s joint venture partner, New Guinea Gold Corporation (“NGG”) are pleased to
announce the commencement and continuation of the drill program at Feni Islands.
The diamond drill rig, ancilliary equipment, and personnel arrived at Ambitle Island
(Feni Islands) on April 22, 2007. The drill program will be assisted by a helicopter
and will commence on the weekend. The rig is owned by Kanon Resources Ltd. (jointly
owned 50% each respectively by NGG and VAN). The partners previously reported a
1500 to 2000 metre diamond drill program will test new targets. In a news release dated
November 7, 2006, Dr. David Lindley, formerly VP Exploration for NGG and Vangold,
recommended drill testing a 3 sq km area of the Feni gold system which has not yet been
drilled. In conjunction with Dr Lindley’ recommendations further drill targets have been
identified by Doug Hutchinson P. Geol with scientific input from Denis Bouchard.
April 26, 2007
The Feni Project lies within the Lihir Corridor which is a structural-volcanic arc
extending from Allied Gold’s Simberi gold project on Simberi Island through the Lihir
Islands to Bougainville Island. Two major ore bodies (in addition to Allied Gold’s
Simberi project) occur within this arc including the Lihir Mine with approximately 50
million ounces of gold mined and in current resources and the Panguna porphyry
copper/gold system on Bougainville Island (15 million ounces of gold).
Feni hosts a large gold system similar to the Lihir gold mine. Numerous drill
intersections such as 114m of 1.12 g/t gold and 0.2% copper, 19.9m of 2.13 g/t gold,
15.25m of 2.56 g/t gold, 10m of 5.7g/t gold, 3m of 10g/t gold, 162m of 0.46 g/t gold and
0.15% copper and 18m of 0.72 g/t gold and 0.68% copper. The drilling and geochemical
sampling program has confirmed that Feni remains prospective for gold and gold/copper
deposits, and is essentially unexplored in terms of drill testing.
In a press release dated Feb 5, 2007 Vangold confirmed NGG agreed to extend the
earning provision to June 30, 2008 wherein Vangold will spend a further $1.26M on
exploration to earn a further 25% in the Feni Islands Project (EL 1021). Of this amount,
the partners agreed that $600,000 shall be spent by September 1, 2007 on a diamond drill
program. Vangold has issued 200,000 common shares to NGG. Vangold and NGG
currently each own 50% of the project with Vangold solely funding exploration to
increase its holding to 75%.
P.O. Box 11622, 1730 – 650 West Georgia Street, Vancouver, BC, V6B 4N9
Phone: 604-684-1974 Fax: 604-685-5970 www.vangold.ca
Vangold Resources Ltd.
News Release
Page 2 of 4
Peter Christopher PhD, P.Eng. in an independent NI 43-101 technical report dated 1st
October 2002, stated Previous exploration of the Feni property has identified over 30
separate gold anomalies and occurrences. Soil geochemistry for gold, mercury, arsenic
and copper has been obtained for a 9km² zone that includes the Kabang and Dome
prospects.
Past drilling, including drilling by the J/V partners encountered widespread gold in
geologically similar environments to the Lihir deposit with gold values in the order of
0.5g/t gold to 10g/t gold. A biogeochemical survey was conducted in 2003 by the botany
group CSIRO (Commonwealth Scientific & Industrial Research Organisation) in
Canberra under the onsite direction of Dr Wayne Takeuchi. Dr Takeuchi is a Research
Biologist at Harvard University and Research Associate of the PNG Forest Authority.
The plant species Astronia palauensis is widely distributed throughout the New Guinea
islands, with a density of about 1 per 100 sq. metres. From observations of this tree in
bulldozer road cuts, it is estimated that the root system of this plant samples about 100
cubic metres of soil. It has been shown that all parts of this plant (bark, leaves, flowers,
twigs) can carry anomalous concentrations of Au and As. Dr. Takeuchi’s research at
Lihir (42 million contained oz Au) successfully demonstrated that the most prominent
biogeochemical gold anomalies detected were directly related to drill indicated gold
mineralisation. The area covered by the Feni survey was about 12 sq. km.
The biogeochemistry sampling was restricted to areas where tephra cover is known to be
thin or absent. The areas included the Kabang and Dome Prospects, covering an area of
about 3.3 sq.km. Large trees (circumference of 79 cm) were preferentially sampled. Tree
density was estimated at about 40 – 50 m apart. The panned concentrate program
focussed on tributaries in the upper Nanum River, Matangkaka Creek (750 m NW of
Kabang Creek) and Kiau Creek (immediately south of Kabang Creek). 41 of the 47
panned samples (87% contained visible gold). Gold was present as either or both of fine
“mustard” gold or 1-2 mm flakes. Matangkaka Creek was the standout creek, in Mr.
Ninkama’s opinion, with more than 30 colours of gold present in the 4 washed samples.
Panned material in this case was obtained from tree roots. In Mr. Ninkama’s, opinion, the
pan concentrate sampling for the main prospects within the central caldera Kabang, North
Central Caldera and Dome Prospects was thoroughly completed
On Aug 16, 2004 Vangold reported "Gold in pan concentrates range up to 120g/t in the
southern caldera region and 86g/t in the northern caldera region." The surface
geochemical stream sampling undertaken showed that a large part of the Central Caldera
feature has anomalous to high value gold in streams from pan concentrate samples. The
Matangkaka gossan (near MAD008), reported in a press release dated June 8th 2004, was
tested by a bulldozer trench and one 180m long drill hole. No gold values greater than
0.5g/t gold were encountered. The Matangkaka gossan has proved to be an accumulation
of secondary iron, manganese and minor gold which has developed or been formed at
some unknown distance from its sulphide source. Normal gossans “sit” immediately
above the sulphide source.
P.O. Box 11622, 1730 – 650 West Georgia Street, Vancouver, BC, V6B 4N9
Phone: 604-684-1974 Fax: 604-685-5970 www.vangold.ca
Vangold Resources Ltd.
News Release
Page 3 of 4
In the 2003 panned concentrate survey, the largest result for the entire island was from a
spring along several major faults and near a hot spring. That result was 1710 g/t. Very
nearby was a positive in the biogeochemical survey which measured gold in tree bark
(drawn up from the roots). This area will be drilled in the upcoming drill program.
In our press release dated July 8, 2005, Dr Lindley agreed to do a complete reappraisal of
data collected to date on the Feni Island Project. As we announced in our news release of
March 17, 2005, Dr. Lindley conducted his review utilizing existing high quality
aeromagnetics, with outcrop mapping and a review of historical exploration data. Dr.
Lindley stated: “During this review, one area that will receive particular attention is the
North Central Caldera. This area has, over the years, consistently returned very high
stream panned concentrate values, has outcropping altered “Lihir-type” breccias and has
some encouraging drill intercepts”.
As referenced in our news release (August 16, 2004) in some areas a thick volcanic ash
obscures the bedrock. Thus, the challenge is identifying drill targets or structural feeder
zones containing higher grade gold mineralization similar to those at the Lihir gold mine.
As our former lead geologist and qualified person under NI 43-101, Dr. David Lindley
explained, over the years several exploration methods have been utilized including
airborne geophysics (aeromagnetics), toxic element (mercury and arsenic) soil
geochemistry and biogeochemistry. The aeromagnetics data remains under utilized and as
the results of our work show, when used in conjunction with surface and subsurface (drill
core) geology, is a very powerful tool. The soil geochemistry used mercury and arsenic in
particular because they have shown to be anomalous above the buried Minifie orebody on
Lihir Island. Furthermore, they can migrate upwards through the porous/permeable
tephra. It is the toxic element geochemistry that enabled the identification of
MAD001/005 and 007.
In a press release dated November 7, 2006, Dr David Lindley, B.Sc., Ph.D, indicated as
follows• The vast majority of streams within the Ambitle “crater” contain alluvial gold
and the gold defined by drill holes to date does not explain the widespread distribution of
this gold.• The geological mapping completed suggests that 3 square kilometers of the
prospective area of the“crater” is masked by surface or near surface recent trachyte lava
flows and tephra (volcanic ash) and this area has not yet been tested by drilling.• Initially
15 drill holes have been recommended to test the potentially prospective area. Part of the
work program will target the Dome Prospect which occupies approximately one-third of
the now extinct central crater on Ambitle Island, the larger of two islands that comprise
the Feni Islands, and part of the work program will test the Hidden and Souther Calderas.
This work is based on a data review conducted by Dr. Lindley the results of which were
published in Vangold's November 3, 2005 news release. Dr. David Lindley, B.Sc., Ph.D,
previously completed a reappraisal of data collected to date on the Feni Island Project.
P.O. Box 11622, 1730 – 650 West Georgia Street, Vancouver, BC, V6B 4N9
Phone: 604-684-1974 Fax: 604-685-5970 www.vangold.ca
Vangold Resources Ltd.
News Release
Page 4 of 4
CEO and President of NGG Bob McNeil commented: “Gold mineralisation has now
been confirmed by drilling over several square kilometers of the 16 sq km caldera. Large
volumes of 1 to 2g/t gold are suggested by the drill results and the proposed drill
program will focus on exploring for possible higher grade gold feeder zones which, if
encountered, could result in a substantial increase in average gold grades. Dr. D.
Lindley in a Press Release dated November 7, 2006 noted that a three sq km core of the
caldera on “crater” has widespread alluvial gold in creeks that dissect that area, but has
not yet been tested by drilling. This area has a thin cover of volcanic ash and trachytic
lavas which are younger than the gold mineralisation and which could obscure
potentially gold mineralised bedrock (as suggested by the stream gold geochemistry).
This area is now targeted for drill testing. Dr Lindley also noted that the Lihir deposit
which contains resources of more than 42M ozs gold is confined to a two sq.km area and
about 50% (by area) of the rock within this zone is unmineralised or weakly mineralised.
The area on Feni to be drilled is sufficient to contain one or more of the component ore
bodies that make up the Lihir deposit. This will be an exciting program which will extend
into the second half of 2007. Initial drill results are not expected before August 2007,
largely because of assay laboratory delays”.
To find out more about Vangold Resources Ltd. please visit our website at www.vangold.ca or
contact Dal Brynelsen at 604-684-1974 or by email brynelsen@vangold.ca.
On Behalf of the Board of
VANGOLD RESOURCES LTD.
“Dal Brynelsen”
Dal Brynelsen, President and CEO
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content
of this news release. The statements made in this News Release may contain certain forward-looking statements. Actual
events or results may differ from the Company’s expectations. Certain risk factors may also affect the actual results
achieved by the Company.
P.O. Box 11622, 1730 – 650 West Georgia Street, Vancouver, BC, V6B 4N9
Phone: 604-684-1974 Fax: 604-685-5970 www.vangold.ca